Circular arguments on Analysts from the Fool

2007-09-20

Took this from the Motley Fool:

“The current model of analyst-intermediated, opinion-based technology buying and selling produces poor financial returns. Across the world, corporate managers spend more than $1 trillion a year on technology. To help managers invest, and technology marketers persuade, $2 billion a year is spent on technology analysts. Yet 70% of projects fail to deliver a financial return, according to the Standish Group and other commentators.”

That’s an interesting, but not particularly insightful point. IT may produce poor financial returns but that doesn’t mean Gartner, Forrester etc are failing their shareholders. Also, what is Standish Group other than an analyst house? And finally, what of the 30% ? Should we all go back to pen and paper, and blow the Internet? I don’t think so.